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Adria Airways gets new part-owner

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Adria Airways has absorbed the company STBE through a merger and acquisition. The move increases the airline's share capital and changes its ownership structure. As a result of the merger, Adria's share capital has increased by 1.5 million euros to 3.28 million and its majority ownership (54.3%) has been passed onto Stefan Beulertz, a lawyer residing in Malta, who was until now the sole owner of STBE. The company, which is closely linked to Adria's owner 4K Invest, purchased the Slovenian carrier's brand name in 2016 for just over eight million euros. Up until now, Adria was solely owned by AA International Holding, which is a wholly-owned subsidiary of the 4K turnaround fund. AA International will continue to hold a share of 45.7% in Adria. It is hoped the merger and acquisition will help boost the airline's finances, with the company expected to post a loss of up to fifteen million euros for 2018.

Adria Airways said its strategy and day-to-day operations would remain unchanged under the new ownership structure. "The merger by acquisition on behalf of STBE is one of the measures to improve the company's financial strength and performance", the carrier said in a statement. Struggling with liquidity issues, Adria was supplied with a four million euro cash injection by 4K Invest late last year. A further ten million euro capital hike has been promised for the first quarter of this year and the abovementioned merger is believed to be a part of this operation. Adria was recently scrutinised by Slovenia's Civil Aviation Agency for insolvency. However, last month the regulator noted the airline was able to secure long-term liquidity.

Meanwhile, as EX-YU Aviation News learns, Adria Airways has also registered its own maintenance, repair and overhaul business. Named Adria Airways Super MRO aircraft maintenance, the company was registered in late December of last year with starting capital of 7.500 euros. The company is a wholly owned subsidiary of the Slovenian carrier. It is believed the establishment of the new MRO business is linked to the Memorandum of Understanding signed between Adria and Russian plane manufacturer Sukhoi Civil Aircraft Company in November of last year, which outlines for the set up of a SSJ100 aircraft Maintenance and Repair Organisation in Ljubljana. Adria's former MRO business, Adria Tehnika, was sold to Poland's Linetech Holding in 2015 for two million euros. Adria is expected to firm up an order for fifteen SSJ100 aircraft later this month or in earlt March with first deliveries expected in April. The airline recently advertised job openings for SSJ type-rated pilots.

This is NOT a stock company! But is a limited liability company that has an owner that can sell or get new investors as he wants. And this are not shares and note that the half of company was not sold but rather the capital was added!

Every piece of Adria news is like watching a soap opera unravel and there is always a cliffhanger so you don't know what will happen next. One day they announce purchase of Sukhois, the next they are opening new routes, then they are closing the new routes, then they open a new base, less than 100 days later they close the base, now they do some murky merger and acquisition.

Some very decent businesses have branches and/or daughter companies registered in Malta and operating under Maltese legislation, where btw salaries taxation is set on rather high amount and practically all "normal" salaries for workers are tax-free. Last example in aviation is Lithuanian Avion Express (18 units A320/321, world's biggest ACMI short-haul operator), which has just registered its new long-haul branch (2 units A330) in Malta

I will tell nothing to no one. Malta is not the only country with murdered journalist, it happened in both Croatia and Serbia as well, for example. Links to specific non transparent countries and particular criminal cases/affairs happen everywhere too, Scandinavia included, for example again. Billionairs can do anything anywhere, including obtaining citizenships, which is nothing very special and is not happening in Malta only. But some people cannot accept being wrong and think that all Croatians are Ustashe and all Serbians are Chetniks. And of course entire Malta equals criminal only, no exception.

Germans residing and registering companies in Malta, this Beulertz guy being appointed as director of a company named Bluo Beta Equity Ltd. (of course in Malta too), which has been dissolved after 8 months of his appointment etc... Seriously Slovenia? Are you that desperate?

"Adria Airways said its strategy and day-to-day operations would remain unchanged under the new ownership structure. "The merger by acquisition on behalf of STBE is one of the measures to improve the company's financial strength and performance", "

So, how will the insolvency happen? My guess is quick and overnight, like Germania. And the director is nowhere to be found, just a short statement from 4K: "Tried and did our best, but it just wasn't meant to happen" Maybe they will blame it on someone, make a smokescreen: "Some people wanted to run this airline into the ground and despite our best efforts they succeeded. A shame the justice system and politics in Slovenia are so corrupt to let this happen"

And then over the following days and weeks all the various companies in Slovenia will start reporting just how much Adria owes them, and we will learn of all the various ways that 4K used to get as much money out of Adria (Saabs, brand name lease, and so on..)

And of course no one will blame the Civil Aviation Agency, instead of making sure that the scam ends as fast as possible it let companies in Slovenia to further accumulate debt towards Adria/4K, which will never be paid

Few days ago I have found article talking about fact that many airlines hide amounts paid/owned for compensation from financial reports. Maybe they did the same considering massive amount of cancelation they had.

@10.11 of course he is involved with 4k. that is what i am actually saying in the post, i don't know how it can be any more clearer than this.or you meant to wrote that he is independent from lufthansa?

His name appeared in the so-called Paradise Papers, published by the International Consortium of Investigative Journalists (ICIJ) at the end of 2017. In 2006, Beulertz established six companies based in Malta, a tax haven.

His company STBE ought to pay eight million euros for the brand, but Adria never saw this money. A company which was not formally affiliated with Adria at the time returns the purchase price to it by deducting license fees each year.

TBE generated revenues of approximately 2.2 million euros in just one year. With the current dynamics, in just a few years, they would pay the entire purchase price, after which the royalties would flow in the net profit.

Adria, on the other hand, remained not only without a significant portion of its assets, but also lost the insignificant income received by STBE from the end of 2016.

Now the Germans have decided to return their brand due to bad economic conditions. After having already produced eight million euros of capital on paper 2016, which has generated another million euros of capital again.

Apparently some circles believe that Adria sponsored by Maltese off-shore holdings and flying 20 Sukhois will become a new Air Dolomiti in the LH group. Other circles just think that Adria sponsored by such Maltese off-shore holdings regardless of 20 Sukhois will end up like Darwin. Take your pick.

It has nothing to do with nationality but with professionalism. Simply, 4K Invest has NEVER managed or run an airline before Adria. The aviation industry is quite a difficult business and different from many others. Hiring former Etihad Regional executives obviously didn't do the trick.

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